Bitcoin Price Drops as Tax-Loss Selling Hits BTC and Crypto Stocks, Analysts Report

Bitcoin (BTC) experienced a notable decline, dragging down major cryptocurrency-related stocks. Market analysts attribute this downward pressure primarily to widespread tax-loss selling. This common year-end strategy involves investors selling assets at a loss to offset capital gains taxes, creating significant sell-side momentum. The trend has resulted in steep losses for crypto equities, mirroring the slump in the digital asset market. Experts suggest this seasonal factor is a key driver behind the current market weakness, impacting both Bitcoin's valuation and the performance of publicly traded crypto companies.